RATHBONES GROUP PLC
|
Paul Stockton, Group Chief Executive Officer of Rathbones, said:
“The integration of Investec Wealth & Investment (IW&I) has progressed at pace throughout the summer, and we remain focused on actions that support the delivery of the financial goals we set ourselves at the outset. Over 80% of clients have been asked for their consent to move their accounts to Rathbones Investment Management from IW&I and response rates are very positive. Run-rate synergy realisation grew to £25.5 million at the end of the third quarter, significantly ahead of the first-year post-combination objective of £15 million."
“Net flows in the quarter reflected the resilience of gross inflows despite the impacts of managing a significant client consent process. Gross outflows have been impacted by the completion of Saunderson House migration, alongside some of the macroeconomic and specific factors we have seen, and which have impacted the industry this year."
“The potential for taxation changes in the forthcoming Autumn budget has created a heightened opportunity for us to engage positively with our clients and Rathbones remains well positioned to support clients to make the decisions needed to achieve their financial goals.”
Financial highlights:
-Funds under management and administration (FUMA) totalled £108.8 billion at 30 September 2024 (30 June 2024: £108.9 billion, 31 December 2023: £105.3 billion).
- £93.3 billion in the Wealth Management segment (£99.0 billion prior to the elimination of Wealth Management FUMA invested in the Asset Management segment of £5.7 billion).
- £15.5 billion in the Asset Management segment.
-Gross inflows were resilient at £2.8 billion in the third quarter (Q2 2024: £3.1 billion) offset by elevated outflows of £3.4 billion in the period (Q2 2024: £3.2 billion).
- Net inflows in Rathbones Investment Management discretionary & managed propositions remained positive in the third quarter at £147 million, (Q2 2024: £135 million), representing an annualised growth rate of 1.1% for the quarter and 1.7% for the nine months to 30 September (£635 million).
- The migration of former Saunderson House FUMA was completed on 31 July 2024. £245 million of FUMA from clients who did not complete the consent process has been reported as a net outflow in this quarter.
- Net outflows in IW&I totalled £251 million (Q2 2024: net inflows of £178 million). Whilst the client consent process continues to progress well, gross inflows were to an extent impacted by the time required to manage the process. Investment manager turnover post combination remains very low such that outflows relating to previous departures were consistent with those seen in Q2.
- Flows in single strategy funds continue to reflect the challenging environment for active managers. Net outflows were £157 million in the third quarter (Q2 2024: outflows of £105 million), limited by first quartile performance over 1, 2 and 5 years in our largest funds.
-Operating income for the Group totalled £220.6 million (Q2 2024: £223.8 million), despite the seasonal reduction in commission volumes over the quieter summer months and lower interest rate conditions combined with some reduction in client money balances.
-Synergy delivery has increased to £25.5 million per annum on a cash run-rate basis, largely due to organisational changes and our property consolidation programme being secured ahead of the planned timeframe.
For further information contact:
Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer
Shelly Patel, Head of Investor Relations
Tel: 020 7399 0071
Email: shelly.patel@rathbones.com
Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4980
Email: ed.gascoigne-pees@camarco.co.uk